The National Pension System (NPS) is a great way to secure a steady income after retirement. The pension amount depends on the investment made. Let's explore how to invest to receive a monthly pension of Rs 1.5 lakh.
Starting a future-proof investment while working is essential. Plan your investments to ensure a stable income for post-retirement expenses. If you desire a good pension after retirement, consider investing in the National Pension System (NPS).
By investing in this scheme, you can accumulate a substantial amount. Learn how to invest to receive a monthly pension of Rs 1.5 lakh after retirement under the National Pension System.
To receive a monthly pension of Rs 1.5 lakh, invest Rs 7,000 monthly. Assuming a 12% annual return on NPS deposits, a 25-year investment totals Rs 29,40,000. With 12% interest, this yields approximately Rs 4.54 crore.
40% of this fund can be used for annuity investment. The remaining 60% can be withdrawn as a lump sum. Assuming a 6% interest on the remaining amount, you can receive approximately Rs 1.5 lakh monthly pension.
The NPS is managed by the Pension Fund Regulatory and Development Authority (PFRDA). To receive a Rs 1.5 lakh pension, at least 40% of the maturity amount must be used for annuity investment. The remaining 60% can be withdrawn as a lump sum, entirely tax-free.
Investing in this scheme offers tax benefits up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Additionally, a tax deduction can be claimed on annual investments up to Rs 50,000 under Section 80CCD (1B).
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